• Apple’s stock was down on the news that a Chinese court had granted an injunction against Apple selling its products in China in favor of Qualcomm
QCOM, +0.91%

• Apple uses Qualcomm technology. There is a dispute between the two companies, and Apple has been withholding royalties.

• Apple claims that injunction is against products using iOS 11. The current operating system is iOS 12.

• Apple continues to sell its products in China.

• Qualcomm seems to claim that the relevant features are in iOS 12, and selling Apple products is a violation of the injunction, but there is no clarity.

• Apple’s stock was down on the news. As Apple’s stock started bouncing off the lows, as shown on the intraday chart, there was a discussion on TV about a doji forming. A doji is a technical pattern in which the open and close are virtually equal.

Be suspect

Investors ought to be somewhat suspect because the rally was not triggered by natural buying that often comes in at lows or by a fundamental or a macro event, but by the mention of a doji on TV and the resulting momentum. Technical analysis is only one of the six screens of the ZYX Change Method that I use. Investors should not make decisions only on technicals, with the exception of very short-term trades.

Disclosure: Subscribers to The Arora Report may have positions in the securities mentioned in this article or may take positions at any time. Nigam Arora is an investor, engineer and nuclear physicist by background who has founded two Inc. 500 fastest-growing companies. He is the founder of The Arora Report, which publishes four newsletters. Nigam can be reached at Nigam@TheAroraReport.com.

Nigam
Arora

Nigam Arora is an engineer, nuclear physicist, author, and entrepreneur and the founder of two Inc. 500 fastest growing companies. He is also the developer of the ZYX Change Method to profit from change by investing. The premise is that most money is made by predicting change before the crowd. Arora is the chief investment officer at The Arora Report and the editor of four newsletters that track the ZYX Change Method. Nigam can be reached at Nigam@TheAroraReport.com

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